RMD Rule of Thumb (move, spouse, state, relative)

[jghorton]

I've seen online RMD calculators, but, most seem to be associated with investment firms and financial counselors who want to sell something.

Is there a rule-of-thumb or standard schedule for calculating required RMD's?

Also, my wife and I have separate IRA's, but, file joint taxes. I'm guessing that each account must be treated separately based on the age and ownership, but, I'm wondering if the overall withdrawal amount can be combined for tax purposes --- Also, can one withdraw funds in advance of 70-1/2 that can be applied toward future RMD's?

[MrRational]

Originally Posted by jghorton

I've seen online RMD calculators
most seem to be associated with investment firms and...

IRA Minimum Distribution Calculator

Most of your other common questions are addressed there (at Bankrate) as well.
The best source for general information is Investopedia who wisely won't
get specific without all the details presented (which shouldn't be done in a forum)

Originally Posted by Investopedia

To ensure that your RMD amounts are calculated properly and that you adhere to the general rules,
be sure to consult with a competent retirement or tax professional or your financial institution.
Taking precautionary steps will help to ensure that you avoid any associated penalties.
Also, try to avoid waiting until the last minute to request your RMD, as doing so could result in you
missing the deadline by which the amount must be withdrawn in order to avoid penalties.
Source

[jghorton]

Originally Posted by MrRational

IRA Minimum Distribution Calculator

Thanks, I had already looked at that one, but, according to the site, my Java settings require a whole new download ... and I didn't want to do that. --- Is there not some type of average RMD percentage ... or is this another of those overly complicated ('bloated') government tax things?

[TuborgP]

One of the simplest things to do is to consolidate your tax free accounts and let the investment company do it for you. The amount you owe is based on the combined total of all accounts so the fewer you have the easier it is to calculate. It is best to do it in conjuntion with a tax strategy to minimize the amount of taxes owed as you possibly move up in income category. Pay attention to changes in state tax law that can make withdrawals sooner more or less advantageous.

[MrRational]

Originally Posted by jghorton

according to the site, my Java settings require a whole new download

Update your system.

[MrWillys]

Minimum Distributions

[reed303]

Originally Posted by jghorton

Thanks, I had already looked at that one, but, according to the site, my Java settings require a whole new download ... and I didn't want to do that. --- Is there not some type of average RMD percentage ... or is this another of those overly complicated ('bloated') government tax things?

If you want to figure your own RMD on paper, there is a relatively simple 3 step worksheet from the IRS at

http://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf

1. get age factor from chart
2. $$ in account divided by factor = RMD for that account
3. add all account RMDs together (separate totals for each spouse)


actual total RMD can be taken from one account if desired

[jghorton]

Originally Posted by reed303

If you want to figure your own RMD on paper, there is a relatively simple 3 step worksheet from the IRS at

http://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf

1. get age factor from chart
2. $$ in account divided by factor = RMD for that account
3. add all account RMDs together (separate totals for each spouse)


actual total RMD can be taken from one account if desired

Thanks, that's helpful -- Re: the RMD from one account; does that apply to accounts in either my wife or my name (Joint Tax return)?

[jghorton]

Originally Posted by MrRational

Update your system.

Of course! .... Why didn't I think of that? (Actually, I've had problems before with JAVA downloads on another system and didn't want to go through the problem again -- The version I have works on most sites).

[jghorton]

Originally Posted by MrWillys

Minimum Distributions

Good site; same one as above, unfortunately much of the information reads like it was written by a tax attorney (probably was!). Still, I'm getting closer to some answers.